04/10/2021

Reports » Job Reports

August 2014

Highlights for policy makers:

Unemployment Rate Holds at 7.4%; Total Employment Climbs 15,300

The Labor Force data for August 2014 (seasonally adjusted; California preliminary) is shown below, along with the change from the prior month:

Seasonally Adjusted California US

Aug 2014 Change from July 2014 Aug 2014 Change from July 2014
Unemployment Rate 7.4 0 6.1 -0.1
Labor Force 18,597,900 0.1% 155,959,000 0.0%
Participation Rate 61.9 0.0 62.8 -0.1
Employment 17,223,700 0.1% 146,368,000 0.0%
Unemployment 1,374,200 0.1% 9,595,100 -0.8%

Source: California Employment Development Department; US Bureau of Labor Statistics

The related not seasonally adjusted numbers (California preliminary), with the change from August 2013:

Not Seasonally Adjusted California US

Aug 2014 Change From Aug 2013 Aug 2014 Change From Aug 2013
Unemployment Rate 7.4 -1.5 6.3 -1.0
Labor Force 18,761,200 -0.6% 156,434,000 0.3%
Participation Rate 62.5 -0.2 63.0 -0.4
Employment 17,365,500 2.3% 146,647,000 1.5%
Unemployment 1,395,700 -16.3% 9,787,000 -14.6%

Source: California Employment Development Department; US Bureau of Labor Statistics

California Employment Development Department’s (EDD) latest release shows generally positive results for August 2014. Total employment grew by 15,300. California’s seasonally adjusted unemployment rate remained unchanged from July at 7.4%, the lowest since Q3 2008. The not seasonally adjusted rate dropped 0.5 points from July 2014 to 7.4% in August 2014, and was down 1.5 points from August 2013. On a seasonally adjusted basis, the number of unemployed grew by 1,100 compared to July 2014.

By comparison, total US employment basically remained unchanged from July (seasonally adjusted increase of 16,000), while the number of unemployed decreased 0.8% (seasonally adjusted decrease of 80,000).

With a small decline in the US rate, California’s seasonally adjusted unemployment rate now stands 21% higher than the national rate. California was tied with Michigan and Tennessee for the 8th highest unemployment rate.

Between August 2013 and August 2014, Bureau of Labor Statistics (BLS) data shows the total number of employed increased by 386,141 (not seasonally adjusted). This increase was the highest among the states, ahead of Texas (284,896) and Florida (262,505).

Labor Force Participation Rate Remains At Lowest Since 1976

The state’s seasonally adjusted labor force participation remained unchanged at its lowest point in the current BLS data series, which has tracked this statistic from January 1976 to present.

Nonfarm Jobs Increase 70,900

EDD reported that between July and August 2014, not seasonally adjusted nonfarm payroll jobs increased by 70,900. Seasonally adjusted, nonfarm payroll jobs grew by 44,200.

Looking at the not seasonally adjusted numbers, the change in nonfarm payroll jobs from July 2014 saw the largest increases in Administrative and Support and Waste Services (14,500), Construction (14,600), and Manufacturing (10,200). Biggest declines were in Arts, Entertainment and Recreation (-5,400), Wholesale Trade (-2,500), and Retail Trade (-1,400). Overall, Total Nonfarm payroll jobs increased 70,900 from July.

Not Seasonally Adjusted Payroll Jobs July 2014 Aug 2014 Change Aug 2014 – July 2014 Change Aug 2014 – Aug 2013
Total Farm 464,200 464,300 100 -3,000
Mining and Logging 32,600 32,900 300 1,700
Construction 680,300 694,900 14,600 34,300
Manufacturing 1,260,000 1,270,200 10,200 -2,600
Wholesale Trade 714,300 711,800 -2,500 7,500
Retail Trade 1,616,300 1,614,900 -1,400 17,400
Transportation, Warehousing and Utilities 512,300 514,400 2,100, 6,100
Information 472,000 471,700 -300 17,500
Finance and Insurance 512,500 514,400 1,900 -11,600
Real Estate and Rental and Leasing 266,000 265,700 -300 3,400
Professional, Scientific & Technical Services 1,183,700 1,188,700 5,000 44,400
Management of Companies and Enterprises 225,000 226,200 1,200 8,500
Administrative & Support & Waste Services 1,019,900 1,034,400 14,500 39,700
Educational Services 326,200 329,000 2,800 11,400
Health Care and Social Assistance 2,024,300 2,034,200 9,900 65,100
Individual and Family Services 533,700 539,600 5,900 25,200
Arts, Entertainment, and Recreation 284,800 279,400 -5,400 3,900
Accommodation and Food Service 1,467,400 1,476,100 8,700 42,400
Other Services 524,600 525,400 800 7,400
Government 2,255,400 2,264,200 8,800 -3,800
Total Nonfarm 15,377,600 15,448,500 70,900 292,700
Total Wage and Salary 15,841,800 15,912,800 71,000 289,700

Source: California Employment Development Department

8 Industries Remain Below 2007 Pre-Recession Job Levels; 11 Above

Source: California Employment Development Department, Wage & Salary Jobs (seasonally adjusted), Average Weekly Wage (2013)

Comparing the number of jobs by industry in August 2014 (seasonally adjusted), 8 industries remain below the 2007 pre-recession levels and 11 are above. As indicated in the figure above, growth has been primarily in the lower wage and higher wage industries. Middle class wage industries such as Manufacturing and Construction remain well below the 2007 levels.

The highest growth industry, Health Care & Social Assistance, includes government-paid IHSS workers under the Social Assistance component.

11 Counties Remain in Double-Digit Unemployment, Improved from 16 in August

The Two-Tiered Economic Recovery Persists

Unemployment rates and employment (all data is not seasonally adjusted) continue to vary widely across the state, although the spread between regions continued to drop from 1.95 in July to 1.89 in August.

Not Seasonally Adjusted Unemployment Rate (%) Aug 2014
California 7.4
Orange County 5.4
Bay Area 5.5
Central Coast 6.6
Sacramento Region 7.0
San Diego/Imperial 7.1
Central Sierra 7.4
Los Angeles 8.2
Inland Empire 8.7
Upsate California 8.6
Central Valley 10.2
Ratio of Highest to Lowest Rate 1.95

By County:

Lowest 3 Unemployment Rates

Marin County 4.2
San Mateo County 4.3
San Francisco County 4.7

Highest 3 Unemployment Rates

Yuba County 11.9
Colusa County 12.0
Imperial County 25.1

Ratio of Highest to Lowest Rate: 5.98

By Legislative District:

Lowest 10 Unemployment Rates

SD 13 (Hill – D) 4.3 AD 22 (Mullin – D) 4.1
SD 37 (Walters – R) 4.6 AD 16 (Buchanan – D) 4.2
SD 11 (Leno – D) 4.8 AD 74 (Mansoor – R) 4.3
SD 36 (new – ) 5.3 AD 24 (Gordon – D) 4.5
SD 39 (Block – D) 5.4 AD 73 (Harkey – R) 4.5
SD 07 (DeSaulnier – D) 5.6 AD 77 (Maienschein – R) 4.7
SD 15 (Beall – D) 5.7 AD 19 (Ting – D) 4.7
SD 02 (Evans – D) 5.7 AD 10 (Levine – D) 4.8
SD 10 (Corbett – D) 5.9 AD 17 (Ammiano – D) 4.8
SD 29 (Huff – R) 5.9 AD 68 (Wager – R) 4.8

Highest 10 Unemployment Rates

SD 28 (new – ) 9.3 AD 53 (Perez – D) 9.9
SD 30 (Mitchell – D) 9.5 AD 59 (Jones-Sawyer – D) 10.1
SD 21 (Knight – R) 9.6 AD 36 (Fox – D) 10.6
SD 33 (Lara – D) 9.7 AD 13 (Eggman – D) 11.2
SD 35 (Wright – D) 9.7 AD 32 (Salas – D) 11.2
SD 24 (de Leon – D) 9.7 AD 64 (Hall – D) 11.5
SD 12 (Cannella – R) 9.9 AD 31 (Perea – D) 11.7
SD 05 (Galgiani – D) 10.1 AD 26 (Conway – R) 11.8
SD 40 (Hueso – D) 10.4 AD 21 (Gray – D) 11.8
SD 14 (Vidak – R) 12.4 AD 56 (Perez – D) 16.3

Ratio of Highest to Lowest Rate: Senate 2.90

Ratio of Highest to Lowest Rate: Assembly 3.99